By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, March 8 (MarketsFarm) – The ICE Futures canola market was weaker Wednesday morning, seeing some follow-through selling after Tuesday’s downturn despite a firmer tone in the Chicago soy complex.
Damage was done from a chart standpoint during Tuesday’s selloff, with the May canola contract falling below nearby chart support to trade at its lowest level in five weeks on Wednesday.
The United States Department of Agriculture is set to release its monthly supply/demand estimates later in the day, with any surprises in the data likely to set the direction of trade by the close. Participants will be watching for any revisions to production estimates out of South America.
Canola remains attractively priced from an end-user’s perspective, which should be keeping some buying interest in the market at least on a scale-down basis.
About 6,500 canola contracts had traded as of 8:45 CST.
Prices in Canadian dollars per metric ton at 8:45 CST:
Canola May 810.10 dn 2.80
Jul 805.20 dn 3.10
Nov 779.20 dn 2.50
Jan 785.30 dn 1.20
